1996: Canadian Auto Parts and Service Chain
CANADIAN AUTO SERVICE CHAIN
Working for a major Canadian retailer servicing the automotive parts, service, hardware and sporting goods market provided many opportunities for working on business growth strategies. An important segment of the retailer’s growth success came from the automotive group as it was a dominant player in the Canadian market. The chain dominated the sale of auto parts to the Do-it-Yourself (DIY) and was also a major factor in auto parts sales to the aftermarket through the attached service bays at the retailer’s outlets. The ownership of an automotive service chain was an advantage that delivered parts sales growth however it also limited this growth to the chain’s store location penetration. The joint operation of auto parts and auto service locations by the company prevented the organization form being able to grow sales in the total auto service market, since the market place viewed them as a competitor with a price advantage.
To counter the market response, a strategy to develop and execute a chain of automotive service only stores was initiated. A store concept was developed that included a parts and accessories retail store, twelve service bays for professional service repairs, two quick lube service bays and lastly full service and self-serve gas bar installation. During 1996 two locations were built, monitored and modified as necessary to deliver the planned success. In 1998 the concept was dropped and the stores rolled into the regular retailer’s strategy because the customers knew the company and they expected access to the entire assortment of products from all product divisions (hardware, sporting goods, etc…) at these locations.